Apple Jumps on Icahn Tweets; Data and Fed Lift Markets (AAPL, LCC)
Several economic reports were released on Tuesday including retail sales numbers and homebuilder data. Consumer spending excluding gas, building materials and cars increased at the strongest rate in seven months. This news spurred confidence in the markets and pushed the major indices higher for the day. Homebuilder stocks including PulteGroup (PHA) dropped after a rise in government bond rates. Investor Carl Icahn announced via twitter that he has taken a large position in Apple (AAPL) stock, sending shares up 4.5%.The Justice Department filed a lawsuit challenging the potential $11 billion merger of US Airways (LCC) and American Airlines (AAMRQ), sending stocks of both companies and other airlines lower. JC Penney (JCP) dropped as well after investor Bill Ackman resigned from its board of directors.
Word on the Street
- Consumer spending sees biggest gain in seven months.
- Carl Icahn announces that he has a large stake in Apple (AAPL).
- CST Brands (CST) reports a 60% decline in second-quarter net income, beats expectations.
- China will soon surpass the US as the top importer of oil.
- Orbitz Worldwide (OWW) Hits a Six-Year High.
Published on Aug 13, 2013By InvestorGuide Staff